KPIT Increases FY23 Outlook for CC Revenue Growth to 31-32 Percent

• Reports CC Revenue Growth of 27% Y-o-Y, 8.3% Q-o-Q
• EBITDA margin outlook elevated to 18.5%-19.0%

KPIT (NSE: KPITTECH; BSE: 542651), a number one associate for accelerating the transformation in direction of Software-Defined Vehicle to the automotive and mobility trade introduced monetary outcomes for Q2 FY23 outcomes at present.

 

Performance overview

 

• Q2 FY23 Revenue
  

  • CC Revenue Growth of 27% Y-o-Y, 8.3% Q-o-Q
  • $ Revenue Growth of 17.2% Y-o-Y and 4.8% Q-o-Q

• Q2 FY23 revenue
  

  • EBITDA progress of 33% Y-o-Y
  • Net Profit progress of 28% Y-o-Y

• FY23 outlook
  

  • FY23 CC Revenue progress outlook elevated to 31% – 32%
  • EBITDA margin outlook elevated to 18.5%-19.0%

• Deals & Pipeline
  

  • Revenue Pipeline in any respect time excessive
  • TCV of $ 142 million received in the course of the quarter

• Talent
  

  • Global worker rely nearing 10000
  • Attrition easing out and anticipated to even change into higher by finish of FY23
  • Focus on expertise improvement and retention; Increments and promotions increased than trade

 

Performance Highlights

 

• Sequential CC progress of 8.3% led by Digital Connected Solutions and Electric Powertrain domains. Growth led by Commercial Vehicles vertical. Higher cross foreign money impression. Pipeline continues to develop stronger, in any respect time excessive
• EBITDA impression of 90 bps put up wage hikes within the quarter (gross impression of wage hikes ~ 300bps). Fresher additions and cross-currency headwinds impression continues. Operating effectivity, web realization enchancment and income progress helped scale back impression on reported margins
• Lower different revenue to the tune of ₹ 58 million (₹ 94.9 in Q2FY23 vs ₹ 152.9 in Q1FY23) on account of translation associated international change losses ensuing primarily from rupee depreciation/appreciation in opposition to the USD/Euro

TCV of recent engagements received throughout Q2 FY23: $ 142 million
 
Commenting on the efficiency of Q2 FY 23
 
Kishor Patil, Co-founder, CEO and MD, KPIT mentioned, “Software is at the heart of the transformation that the mobility industry is witnessing. KPIT’s position as a leader in this transformation is leading to consistency in performance and long-term visibility of growth. Q2FY23 performance has been better than expectations. We have a healthy pipeline with a couple of mega engagements expected to get closed in the coming 3-4 months. We have thus raised our FY23 growth outlook to 31%-32%. The organic growth outlook is 200+ bps higher than the higher end of the 18%-21% outlook at the beginning of the year.”
 
Sachin Tikekar, President and Joint MD, KPIT mentioned, “Vehicle makers are investing heavily to develop Software Defined Vehicles (SDVs) of tomorrow. This calls for deep domain expertise and software competence, which KPIT brings to the table. We are seeing the result of this and thus witnessing increased traction with our Strategic Clients. The supply side constraints are gradually moving in the right direction with attrition numbers consistently on the decline. We are very excited with the addition of Technica to the KPIT family with the closing effected in October 2022.”
 
READ FULL INVESTOR UPDATE: https://www.kpit.com/kpit-investor-update-q2fy23-2/